T1 Energy Inc.'s (NYSE:TE) stock rose 12% last week, but insiders who sold US$4.3m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$1.71, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
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The Founder & Director, Tore Slettemoen, made the biggest insider sale in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$1.74 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$1.15). So it may not tell us anything about how insiders feel about the current share price. Tore Slettemoen was the only individual insider to sell shares in the last twelve months.
Tore Slettemoen sold a total of 2.50m shares over the year at an average price of US$1.71. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for T1 Energy
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that T1 Energy insiders own 9.2% of the company, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at T1 Energy in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for T1 Energy (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.
Of course T1 Energy may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Discover if T1 Energy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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